Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1887-04-21
SPECULATION.
rho Conditions Under which ~ ~
unsg "a Noa da~mhlfnn

VI WHICH VARIES Bkehtly from Iuohlu 70
month. such speculation, however, par
takes largely Of the nature of investment.
II q business man Watching the markets
closely, sees some article OF commerce
abnormally low, buys quantity of n,
holds Il for rise in price, and then sells
II ~ good round advance, there is very
little difference, either morally or legally,
oetween such transaction aud buying
goods to sell agan the same day or weelf
ut q certain percentage of profit. In the
one case the Spectator takes an extra
risk, and holds on until he becomes salts.
lied that his Judgment is either right or
wrong; ond 10 the other case, the bust
ness man handles goods for small com
mission without any special risk. Iegiti
mate business, however, Is entirely diff.
Iaront from legitimate speculation, al
though 10th may be equally legitimate
Regular hnNuess il essentially handling
goods, or ilaking goods, for a certain
pa,csutete ~ profit 20 compensate for
thu amount Of iabor involved. Specula
tiuD is taking an extra risk on goods for
the sake OF gaining larger profit than
could ho secured in the ordinary way.
but right hers the legitimate ends and
the Legitimate begins When business
man, watching the markets closely, secs
some article Of commerce abnormally or
Ertilieia'ly high, sells quantity of II
"short " and truats 20 luck or good
Judgment 60 close the deal ut much
lower figure in the eourae of q few weeks
or months he has left legitimate specula-
ton aud gone 10 gambling. His "sell-
ing what he does not possess in the
hope of "a decline in price, or buying"
what be does not intend to own, involves
fictitious element, an element of chsnco
or hazard. Selling Short on o margin
or buying on margin, when there is no
desire or inteution to receive or deliver
the goods on either side, is indeed off the
same piece-transaoti precisely alike
in principle, method and essence. The
man who 'sells" thus simply beta so
much margin money that the market will
soon 90 down, and the man who buys"
thus simply bets 40 much margin money
that the market will soon 60 up. Legiti-
mste speculation. on the 9th r hand
uust be ris tuying of actual gcoda in
in tha hope OF rise in price, or the
ae'n-i Hing Of goods already owned, il
the hcpe Of getting more of the same kind
at u lover figaro
Henre an dealings in futures" or dis
tiut options On goods which no one wants,
or intends so own or handle, is nothing
bat gambling in every respect, whether
carried on in board Of trade, with bar.
rem theory of delivery behind the bust
ness forln, or in Il hucket-shop, where tho
theory Is partially or entirely Ignored
The form % buying aud selling IN suct
transactions amounts to nothing more
| than method of recording the bet be
/ tween tha two parties. When a man bet.
| on q horse race in pool.room he gets
ticket showing how much money is up
and what horse must come in first il
order 10 have tue ticket.bolder win
| Whan o man bets on the future price O
\ grain Ia a board OF trade or bucket shop
either short or long, a memorandum il
made of the ideal ~ and the amount o
money deposited, and this account simpl,
shows how the market ms. go in orde
60 havo the buyer win and the seller lose
or vice versa. That IL all there is of il il
actual practice. Theoretically the boar,
Of Trade hns a long rigmarole about dc
livery Cf stuff in case the deal is no
closed before tho option natures, and TIA
buckatsh0p las not; bnt with or withou
theory, the transaction in both places i
practically alike. and practically nothing
more or less than simple game o
chance on the rise Or fall OF quotation
the next hour, day or week, as the cas-
may be.
This is not saying that boards Of trade
produce exchanges, and the like, are, i
all respects, on par with bucket-shop5
because such is not the fact. Bucket
! lhonu IpnI prafauI IN IN 1uytIipr 81